Will there be a shortage of diesel and aviation fuel? Head of the IEA: April, beginning of May
The war in the Middle East limited the availability of jet fuel and diesel fuel in Asia. Europe will be the next to experience shortages, said the head of the International Energy Agency (IEA), Fatih Birol, quoted by CNN. Carriers respond to the crisis – e.g. airlines Air France-KLM increases ticket prices by €50 for long-haul flights.
“The biggest problem today is the shortage of jet fuel and diesel. Those are the main challenges. We're already seeing it in Asia,” Birol said in a podcast published on Wednesday, adding that shortages were also likely to hit Europe this month or “maybe in early May.”
In March, he said, cargoes of crude oil and natural gas that had left the Middle East before the United States and Israel unleashed war in the region were still arriving at world ports. “But nothing happens in April” – he added.
Birol's forecast is consistent with comments made last week by the CEO of the oil company Shell and Germany's economy minister, who warned that if the conflict with Iran continues, Europe will face energy shortages as early as this month.
According to the latest data from the International Air Transport Association (IATA) for the week ending March 27, global jet fuel prices are now more than twice as high as they were in February.
Fuel shortages. Airlines are responding
Airlines responded with price increases, subsidies and cuts in the number of flights.
According to Reuters, an aviation holding company Air France-KLM announced that their airlines plan to increase long-distance ticket prices to meet rising fuel costs. Ticket prices will increase by €50 for a return trip.
American carrier American Airlines said it expects spending to increase by $400 million in the first quarter. due to the increase in fuel prices.
Source: CNN, Reuters
